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Tourism Development Planning 6/27/2011 The assignment due on 8 July 2011 Prepared by: Khin Su Han Contents 3 . Introduction 3. Assessment criteria (1. 1, 1. 2 & 1. 3) 8. Assessment criteria (2. 1, 2. 2 & 2. 3) 13. Assessment criteria (3. 1, 3. 2 & 3. 3) 17. Assessment criteria (4. 1, 1. 2 & 4. 3) 21. Conclusion 21. Reference Introduction Any form of economic development requires to careful planning. It is not different in tourism development planning.
It is a multi-sectors activity and requires carefully cooperation and coordination of public and private sectors together with the engagement of the local community. Tourism Development Planning Tourism provides a major economic development opportunity for many countries and a means of improving the livelihoods of its residents. Both the public and private sectors involved in tourism depend on planning to achieve tourism development that respects the local community, creates appropriate employment, maintains natural environment, and delivers a quality visitor experience.
Tourism development planning includes many different forms such as economic development planning, land use planning and infrastructure planning etc. It involves different stakeholders such as governments, private investors, developers and local communities. The aim of any development is to provide benefits for at least some of the stakeholders. Benefits of Macau Tourism Development In 1999, Macau was established as a Special Administrative Region of China, with its sovereignty officially returned to the Chinese Central Government from the Portuguese Government.
Macau SAR Government ended the monopoly system gaming operation and opened the gaming licenses to six gaming operators including foreign organisations to extend gaming related tourism in Macau. After restructuring of Macau gaming industry, Macau can yield positive results, as the existence of competition in the industry generally benefits the customers, provides more choices and offers wider access to better service. Another benefit of gaming and tourism development is the economic growth. Tax revenue and funding also increase with the increase in number of gaming and gambling related establishments, e. . , Casinos, Hotel and Resorts, owned by different organisations. As the percentage of the revenues they pay the government is increased, there are others benefits for local community, for example, improvements and developments of infrastructures (e. g. , Pac On Ferry Terminal, Hong Kong- Zhuhai- Macau Bridge project), public services, and generate direct and indirect job opportunities for the Macau citizens. The gaming activities in Macau go hand-in hand with its tourism industry. It cannot deny Casinos are the main attractions of Macau tourism.
Macau World Heritages are also promoted through gaming attraction. For long term sustainability, all stakeholders intend Macau to develop as Leisure tourism and Heritage destinations. Recent development of Macau gaming industry is the benefit for Macau tourism industry. This is also an opportunity to enhance Business Tourism in Macau and promote MICE events in Macau Hotels and Resorts. The need for planning in tourism development Proactive and reactive approaches There are a variety of approaches that may be adopted when planning for the development of any industry or any economy. Proactive approach requires deep and thorough understanding of not only the local economy and its structure, limitations and strengths, but also the probable effects of external factors, how they may impinge on the local development process and what form these external effects are likely to take. * Reactive approach is based on the premise that there are too many variables, internally and externally, to be able to plan. These variables cannot be controlled nor can they be predicted with sufficient levels of accuracy.
Therefore, it is better to develop reactive schemes so as to be in good order to meet the unexpected rather than to attempt a proactive but indeterminable development path. However, both approaches can be used at the same time, e. g. , pilots are trained to fly to predetermined paths and schedules while, at the same time, they are trained to be able to react sensibly to unexpected events. Sustainable development We must look forward to future generations when we are planning to consume finite resources.
Development has to be sustainable to be classified as development at all, otherwise it is short-term growth. The allocation of finite resources to productive activities is not sustainable unless technological inventions and innovations can find alternative resources in the future. There is a danger in inhibiting specific forms of tourism activities in order to reduce the immediate impacts of tourism in the short term because such remedial actions may unleash far more devastating and less sustainable impacts in the future. Characteristics of travel and tourism industry
If tourism is to be incorporated into a country’s development plan, it must be orgainsed and developed according to a strategy constructed on sound foundations. Moreover, developers or planners need to identify particular characteristics of the industry. * Tourism product characteristics * Tourism as a means of wealth redistribution * Tourism as a labour- intensive industry * Tourism and on-the –job training * The structure of the tourism industry * Protectionism * Multitude of industry * Price flexibility * Price competitive * Seasonality * High operating leverage /fixed costs Public-Private Partnership
Collaborative arrangement between public bodies, such as local authorities or central government, and private companies tends to be referred to a public-private partnership (PPP) in which the public party provides a public service or project and assumes substantial financial, technical and operational risk in the project. Sometime, private companies are often more efficient and better run than bureaucratic public bodies. In trying to bring the public and private sector together, the government hopes that the management skills and financial acumen of the business community will create better value for money for taxpayers.
The primary benefits of using PPP to deliver development projects include: * Expedited completion compared to conventional project delivery methods; * Project cost savings; * Improved quality and system performance from the use of innovative materials and management techniques; * Substitution of private resources and personnel for constrained public resources; and, * Access to new sources of private capital. National Air Traffic Services Ltd (NATS) NATS is the company which holds a monopoly of air traffic control for aircraft flying over the United Kingdom and with its Irish counterpart, the North east Atlantic.
Until the Public Private Partnership (PPP), it was owned by the Civil Aviation Authority (CAA), which remains its regulator. In 1997 NATS estimated that it required some ? 100 million of further capital investment every year for the next decade to increase air traffic control capacity to meet future traffic growth. Then the department and the Treasury concluded that the solution to this problem was to adopt a PPP for NATS. In 1998, a controversial PPP was proposed. This was written into the Transport Act and in 2001 51% of NATS was transferred to the private sector.
However due to the decline in air traffic following the September 11, 2001 attacks ? 130m of additional investment was required, ? 65m coming each from the UK government and BAA, who received 4% of the company in return. (Assessment Criteria 1. 1, 1. 2 ; 1. 3) Interactive planning systems and processes Development planning process The concept of planning is concerned with organising some future events in order to achieve pre-specified objectives. Planning and development is a form of comprehensive planning because it integrates all forms of planning – economic, physical, social and cultural.
There is a consistent structure that can take a variety of forms, there is a consistent structure that can be applied to the process of planning. The structure is set out in following figure. Figure – The key process of the planning process Tourism Development Plan In planning a development project, there is a team which consists of four groups of specialists: * Technical services * Marketing specialists * Planners * Economists. The plan will be constructed over a period of time and this time can be broken down into five distinct phases: 1.
Identification and inventory of the existing situation 2. Forecasts for the future 3. Plan formulation 4. Specific project development 5. Implementation Basic tourism development plan Analysis of global market share and trends Survey of resources and existing facilities Programme of additional facilities Land-use plan with location of existing facilities Evaluation of costs and returns The features in tourism development planning at different level Development planning layers International tourism planning: this level of planning is often weak in structure, detail and enforcement.
It is generally provided in guideline form in order to assist the member states. National tourism planning: it encapsulates the tourism development plans for a country as a whole but often includes specific objectives for particular sub-national regions or types of areas within the national boundary. Regional or local tourism planning: it deals with specific issues that affect a sub-national area. It tends to be much more detailed and specific than its national counterpart and can very quite significantly from area to area Economic| Social| Environment| Locale. g. , MICE Market Stimulation Program of Macau Government Office| Increased local income following development of business tourism | Positively affect the life style of local people. | | NationalChina National tourism Policy “Building a World Tourism Power and Developing a New Mainstay Industry ” | Develop mass tourism economy. Create job opportunities directly and indirectly. | Establish Travel ; Tourism schools, university and training programs. Improve China’s aviation sector. | | Internationale. g. PATA Foundation Grant| | Supporting educational initiatives that target stakeholders| Contributing to the conservation of the environment and cultural heritage of Asia Pacific | Methods available to measure tourism impacts Cambridge Tourism Economic Impact Model The Cambridge Model is essentially a model that produces estimates from existing national and local information (e. g. accommodation stocks, inbound trips) of the level of tourism activity within a given local area. The volumes of visits are translated into economic terms by estimating the amount of spending by visitors based on their average spends per trip.
In turn, the impact of that spending can be translated to estimate the effects in terms of sales, income and jobs. The standard measures generated in this Model are: the total amount spent by visitors, the amount of income for local residents and businesses created by this spending, and the number of jobs supported by visitor spending. The basic process of estimation used can be divided into two parts: * Inputs * Visitor trips and visitor spending at a regional/ country level derived from national survey sources * Local supply data on accommodation, attractions and other factors specific to given area * The use of ultipliers derived from business surveys in the area to estimate full time equivalent and actual jobs generated by visitor spending in the area. * Outputs * Derive estimates of the volume of domestic and overseas staying visitors visiting the area during specific period, by type of accommodation and purpose of visit * Derive estimates of the volume of day visitors visiting the area, by purpose of visit * Derive estimates of the value of tourism spending and the impact of this spending on different sectors of the local economy, in terms of jobs supported.
Environmental Impact Assessment (EIA) The need for EIAs has become more frequent and expected when considering tourism development in many environmentally sensitive tourism destinations and expected when considering tourism development and its relationship with the environment. Environmental protection is so much easier and less costly than environmental correction even when such remedial action is possible. EIA may be: * Undertaken in order to determine a development’s impact upon a specific ecology or even upon a single rare species. Instigated for the express purpose of determining the financial implications of environmental correction in order to reflect accurately the net economic returns of tourism activity or in an attempt to retrieve some of these costs from the industry. * Required in order to compare alternative developments to allocated resources in a manner that maximising the economic benefits of development while minimizing the negative environmental impacts. * Required to raise the profile of environmental issues. (Assessment criteria 2. , 2. 2 ; 2. 3) Sustainable Tourism Tourism is one of the world largest industries and it is vital for some countries. Although tourism development generate economic development for tourism destination regions and create job opportunities for local people, there are numbers of negative impacts of tourism development. Every tourism planning should not only be development of today but also be sustainable for future generation. So sustainability is now one of the most common concepts used in tourism development discussions.
Sustainable tourism is tourism attempting to minimize the negative impacts on destination regions while maximizing the positive impacts. Aspects working against sustainable tourism development Economic Tourism competes with other industries for the use of factors of production and as such it can stimulate price inflation by driving up the cost of land and labour. It attracts workers from rural areas who may have been employed in the traditional industries causing the output levels in those industries to fall. This distorts the allocation of resources in the longer term and lead to structural unemployment.
Where tourism development takes place in industrialised urban areas the above may not present severe obstacles, but to less developed countries or sparsely populated regions the effects associated with the development of tourism can be economically traumatic. Environment Airlines are responsible for a major aspect of air pollution and the vast majority of air transport is for tourism purposes. Tourism is about real estate development and so it competes for land use and depletes the natural environmental stock as it does so.
Tourism activities can be severely disruptive to biodiversity from the extreme activities of hunting and fishing to the less obvious disruptions through wildlife observing and hill walking. The introduction of large numbers of visitors to environmentally fragile areas will always be accompanied by tension between the natural environment and tourism. Socio-culture Tourists may be through natural curiosity where the empathetic visitor is intrigued by local customs and traditions so they go to observe and that observation can set in motion a commercialization process that will sooner or later change the events.
Irrespective of the difficulties encountered when trying to define sustainable tourism in a usable and acceptable manner, there are approaches that can be taken to mitigate some of the threats to the long-term viability of the industry. Figure of development plan for sustainable tourism Comprehensive market evaluation and assessment Competitive and comparative advantage analysis Monitoring and re-evaluation Integrated analyses of economic, environmental and social impacts Evaluation of public and private costs and benefits Land-use plan with location of additional facilities Programme of additional facilities
Analysis Tourism plan objectives Survey of resources and existing facilities Planning for sustainable tourism development Generally, main stages of sustainable tourism development plan are same with other tourism development planning. The above figure show main stages of planning. Plan of Sustainable Tourism in the Shrophire Hill and Ludlow 2011-2016 (Case study) In December 2010, the Shropshire Hills Area of Outstanding Natural Beauty Partnership, together with Shropshire Council, commissioned The Tourism Company with Alison Caffyn to prepare a sustainable tourism strategy and ction plan for the whole of the Shropshire Hills and Ludlow destination, as covered by the Shropshire Hills and Ludlow Destination Development Partnership (DDP). The strategy has been based on the following consultation which has been carried out over the past four months: * A review of background documents, tourism research and promotional material, including websites. * An online survey of tourism enterprises which was promoted through various tourism associations and Chambers of Trade; the survey ran through February and early March, during which time 123 valid responses were received. Five local consultation meetings, held between 28th February and 10th March in Rushbury, Clun, Minsterley, Cleobury Mortimer and Ludlow, which were attended by more than 60 people. * One-to-one consultation with over 40 representatives of tourism associations, those responsible for the delivery of tourism services, individual tourism operators and owners and managers of a number of countryside sites and facilities. * A number of site visits, where access has been possible outside the main season. A stakeholder workshop held in Craven Arms Community Centre on 7th April, attended by 40 people representing a wide range of stakeholders. * Comments received on an interim report prepared for the workshop and subsequently circulated to the full list of consulters, whether or not they were present at the workshop. Primary aim of the planning is to develop, manage and promote the Shropshire Hills and Ludlow as a high quality sustainable tourism destination, in keeping with its focus on a designated Area of Outstanding Natural Beauty. The planning will be undertaken for the five year period 2011 – 2016. Assessment criteria 3. 1, 3. 2 ; 3. 3) Conflict and Tourism Development There are various stakeholders in tourism operations and developments. As their specific views are used to be in different ways, their concern is also different. Some possible conflicts occur because of different concern of various stakeholders. For example: * Local residents who live near destination want to against potential tourism development because of overcrowding while National Tourism Board and local tour operators are promoting the destination in new market. Investors, developers and operators of associated accommodations or attractions may against Government immigration restriction. The role of the planners is very important to solve a conflict in a developing destination. There are three primary roles for planner who deals with potential development: * First, they act as representatives of the government and as regulators who ensure that government guidelines are observed. * Second, they act as facilitators, collecting opinions and helping each of the stakeholders to explain their viewpoints. Finally, they will often act as arbitrators or judges, making a decision about what planning will be allowed, and under what conditions. The implications of balancing supply and demand Measuring balance of supply and demand is important in development planning. For long-term planning, imbalance of supply and demand will fail to contribute positive result. For example, the population of the destination area is small, even a small number of tourists may have a significant impact on the area’s society and culture. Figure A Figure B Imbalance situations Figure C
Balancing supply and demand for sustainable development Enclave tourism Enclave tourism often refers to geographically isolated and closed-off resorts containing all tourism facilities and services required by tourists, and thus encouraging them to stay inside and spend within the compounds of the enclave. Advantages and disadvantages of enclave tourism to local community Disadvantages * Infrastructure cost – These are generally paid by the local government and local taxpayers rather than tourism developers (e. g. , road improvement, airport expansion). Increase in price – There is often increasing demand for basic services and goods from tourists which cause price increases that negatively affect local residents whose income does not increase proportionately. * House and land price – Tourism development typically increases real estate demand so it increases building and land values for residents. * Economic dependence –There is always a risk of becoming over-dependent on the tourism industry while diversification into tourism will generally benefit the local economy (e. g. , economic crisis can be devastating to inbound tourism flow). Seasonality – This inevitably leads to lack of job security, irregular income through the year, lack of training, etc. Advantages * Foreign exchange earnings – These result primarily from tourist spending, and the export and import of related goods and services. * Contribution to government revenues – These may be direct (taxes on incomes and direct levies such as departure taxes) or indirect (taxes and duties levies on goods and services supplied to tourists). * Employment generation – According to the WTO, tourism supports some 7% of the world’s workers. Stimulation of infrastructure investment – Infrastructure improvements (e. g. , water and sewage systems, roads, and transport networks) can improve the quality of life of residents. * Contribution to local economies – Tourism can be a significant part of the local economy. Payments made to the tourism industry may also have a wider benefit through the operation of the multiplier effect, where further economic growth is achieved in industries not directly linked to tourism (e. g. , building, accountancy, farming). (Assessment criteria 4. 1, 4. 2 ; 4. 3) Conclusion
The successful development of tourism requires the construction of development plan or strategy that is flexible and thorough. Flexibility is required in order to adjust and reformulate in response to internal and external changes. Thoroughness is requiring because of the complexity of the tourism industry and the economic, environmental and social consequences of its development. The issue of ‘sustainability’ is no more than sound planning because development requires that the path chosen is one that is in some way sustainable. Reference * Toursim principles and practict * Macau Business Magazine * Student guide book (ilearning) .